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Mortgage Loan Originating > Test Questions > Flashcards

Test Questions Flashcards

1
Q

What law deals with credit, apr and advertising of consumer loans?

A

TILA/ Regulation Z

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2
Q

What 4 documents must be disclosed at or within THREE days of application?

A
  1. Home Loan Toolkit “Know Before you Owe Booklet”- HUD
  2. Special Information Booklet (only for purchases) “Loan Estimate”- TILA
  3. Mortgage Servicing Disclosure Statement
  4. List of HUD Approved Home Counselors
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3
Q

What TWO documents must be disclosed before settlement?

A
  1. Affiliated Business Arrangement Disclosure 1%

2. Closing Disclosures: 3 days prior TILA

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4
Q

What TWO documents must be disclosed at doc signing?

A
  1. Finalized Closing Disclosure

2. Intial Escrow Statement w/in 45 days of close

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5
Q

X is the letter used to describe which Regulation?

A

RESPA

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6
Q

Which regulation prohibits kickbacks?

A

RESPA

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7
Q

Which regulation requires the lender to cancel PMI when the loan reaches 78% LTV?

A

HPA homeowners protection act

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8
Q

Which regulation prohibits fee splitting?

A

RESPA

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9
Q

RESPA is the acronym used to describe what law?

A

Real Estate Settlement Procedure Act

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10
Q

What type of mortgage requires a non-refundable funding fee?

A

VA loan

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11
Q

What is the provision in a mortgage enabling a lender to demand full repayment if the borrower DEFAULTS on the loan?

A

Acceleration Clause

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12
Q

What is the provision in a mortgage enabling a lender to demand full repayment if a borrower TRANSFERS the loan?

A

Alienation Clause

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13
Q

What does the CFPB stand for?

A

Consumer Financial Protection Bureau

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14
Q

What two laws created the CFPB?

A

Dodd Frank Act & Consumer Finance Protection ACt

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15
Q

Which regulation is designed to help meet the credit needs of the communites in which it operates?

A

CRA- Community Reinvestment Act

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16
Q

Under ECOA rules and regulations, how many days does the borrower have to request a copy of an appraisal report if the application was denied?

A

90 days

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17
Q

Under ECOA rules and regulations, if an application for credit is denied, and if requested by the borrower- how many days does the lender have to provide a copy of an appraisal report?

A

30 days

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18
Q

If a loan application is approved, under ECOA rules and regulations, when must a copy of the appraisal be provided to the borrower?

A

3 business days prior to the loan closing

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19
Q

Conforming Loans follow the guidelines of which regulators?

A

Fannie Mae and Freddie Mac

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20
Q

Which regulations requires the lenders to BE EQUAL when extending credit to borrowers?

A

ECOA- regulation b

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21
Q

How old must a borrower be to qualify for a reverse mortgage?

A

62

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22
Q

Which regulation has the primary function of preventing Identity Theft?

A

FACT Act

23
Q

Which regulation has SECTION 114 Rules?

A

FACT Act

24
Q

Which regulation requires the creditor to verify the VALIDITY of any change of address received?

A

SECTION 114 of the FACT Act

25
Q

What is the payment method used in a reverse mortgage that allows the homeowners to receive a monthly check while living in the property?

A

TENURE method

26
Q

What is the fraud scheme where a borrower uses someone else’s name to purchase the property, but that person will NOT be living on the property?

A

Straw borrower

27
Q

What type of lender “insures” mortgages?

A

FHA approved lenders

28
Q

What type of lender “guarantees” mortgages?

A

VA approved lenders and USDA approved lenders

29
Q

What is the entity that loans money to fund purchases in rural areas?

A

USDA/ Dept of Agriculture

30
Q

What is the value remaining in property after all liens and debts have been paid?

A

Equity

31
Q

A borrower is refinancing his home. How much time does Regulation Z give him to change his mind (rescind)?

A

3 days

32
Q

Which Regulation established the 3 day right of rescission rule?

A

TILA/ REG Z

33
Q

Redlining is part of which regulation/law?

A

Fair Housing Act

34
Q

Blockbusting is part of which regulation/law?

A

Fair Housing Act

35
Q

Steering is part of which regulation/law?

A

Fair Housing Act

36
Q

Trying to convince a homeowner to sell his home by implying that another race/ethnicity is moving in the neighborhood is called?

A

Blockbusting/ panic selling

37
Q

Trying to convince a homeowner to purchase in a particular neighborhood based on her race, religion or ethnicity is called?

A

steering

38
Q

Refusing to make loans on a property in a certain neighborhood for discriminatory reasons is called?

A

Redlining

39
Q

What does HOEPA stand for?

A

Home Ownership and Equity Protection Act

40
Q

HOEPA Loans are part of which larger regulation?

A

TILA REG Z

41
Q

High Cost Loans are part of which larger regulation?

A

Reg Z/ TILA

42
Q

High Priced Loans are part of which larger regulation?

A

Reg Z/ TILA

43
Q

Section 32 loans are part of which larger regulation?

A

TILA reg z

44
Q

Section 35 loans are part of which larger regulation?

A

TILA

45
Q

MDIA Act is part of which larger regulation?

A

TILA

46
Q

Mortgage Disclosure Improvement Act is part of which larger regulation?

A

Reg Z TILA

47
Q

What is another name for Annual Percentage Rate?

A

Effective Rate

48
Q

What is another name for Interest Rate?

A

Note Rate or Nominal Rate

49
Q

PITI divided by Gross Monthly income is referred to as what?

A

Housing Ratio of Front End DTI

50
Q

PITI + monthly debt divided by Gross Monthly income is referred to as what?

A

Total Obligation Ratio- Black- end Ratio

51
Q

How long must TILA Disclosures be kept?

A

2 years exceptions LE 3 years CD 5 years

52
Q

What is the maximum amount of time that NEGATIVE info can remain on a credit report?

A

7 years

53
Q

What is the maximum amount of time that a bankruptcy can remain on a credit report?

A

10 years

Mortgage Loan Originating (7 decks)

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